A newconnect.mheducation.com Outlook Answered: Cove's Cakes is a local bakery. Pric... HW #5 (Chapter 6) Wa apter 6) 6 Saved ny iv IVTJ. Number of bikes produced and sold 470 770 930 Total costs Variable costs Fixed costs per year Total costs $117,030 %24 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $529.75 Required: 1. Complete the table. 2. Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level ind the company sells each bike for $810. 4. Calculate Hermosa's break-even point in units and sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places. Number of bikes produced and sold 470 Units 770Units 930 Units Total costs Variable costs 117,030 Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 529 75 < Prev 7 of 7 Next %24 %24 %24

A newconnect.mheducation.com Outlook Answered: Cove's Cakes is a local bakery. Pric... HW #5 (Chapter 6) Wa apter 6) 6 Saved ny iv IVTJ. Number of bikes produced and sold 470 770 930 Total costs Variable costs Fixed costs per year Total costs $117,030 %24 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $529.75 Required: 1. Complete the table. 2. Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level ind the company sells each bike for $810. 4. Calculate Hermosa's break-even point in units and sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places. Number of bikes produced and sold 470 Units 770Units 930 Units Total costs Variable costs 117,030 Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit 529 75 < Prev 7 of 7 Next %24 %24 %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A local furniture company has estimated the following components for a new product. (in pesos) Fixed cost = 50,000Material cost per unit = 2.15Labor cost per unit = 2.00Revenue per unit = 7.50 Using spreadsheet, find the exact breakeven point. Attach excel solution. Group of answer choices 15, 380 units 14,875 units 14,925 units 15,030 units No choice given
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales $ 3,000,000Variable expenses 1,500,000Contribution margin 1,500,000Fixed expenses 200,000Net operating income $ 1,300,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. If this year's sales increase by $53,000 and fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's sales to increase by 10%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a…
Cost Accounting; Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly , its cost per rear wheel assembly is as follows (based on annual production of 2000 units); Direct materials-$28, Dirct labor-55, Variable overhead-23, Fixed overhead-43 Total=$149 Trailblazers has offered to sell the assembly to Mobility for $110 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazer's offer would eliminate annual fixed overhead of $40,600. Required; a. Prepare a schedule that shows the total differential cost
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Cost accounting; Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 2000 units); Direct Materials - $28 , Direct labor - 55, Variable overhead -23, Fixed overhead - 43 Total -149 Trailblazers has offered to sell the assembly to Mobility for $110 each. The total order would amount 2000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $40,600. Required; a. Prepare a schedule that shows the total differential costs. Status Quo Alternative Difference Trailblazers' offer Materials…
Atlantis Company is placing an ad in the local paper to advertise its products . The ad will run for one week at a total cost of P5,500. Atlantis Company has four categories of products as follows: Product category % of floor space Expected sales occupied value A 20 P35,000 1515,000 45 64,500 D 2025,500 What amount of advertising cost should be allocated to product category A, assuming Atlantis allocates based on percent of floor space occupied ?
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Assume that Cold Rock sells ice cream for $4.80 per gallon. The cost of each gallon follows: Materials . . . . . . . . . . . . .$1.80 Labor. . . . . . . . . . . . . . 0.60 Variable overhead . . . . . . . . . . . . . .0.30 Fixed overhead ($24,000 per month, 20,000 gallons per month) . . . ............... 1.20 Total costs per gallon . . . . . . . . . . . . . . . . $3.90 One of Cold Rock’s regular customers asked the company to fi ll a special order of 400 gallons at a selling price of $3.60 per gallon for a fund-raising picnic for a local charity. Cold Rock has capacity to fi ll it without affecting total fi xed costs for the month. Cold Rock’s general manager was concerned about selling the ice cream below the cost of $3.90 per gallon and has asked for your advice. Required a. Prepare a schedule to show the impact on Cold Rock’s profi ts of providing 400 gallons of ice cream in addition to the regular production and sales of 20,000 gallons per month. b. Based…
Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units): Direct materials $ 27 Direct labor 104 Variable overhead 19 Fixed overhead 44 Total $ 194 Trailblazers has offered to sell the assembly to Mobility for $166 each. The total order would amount to 1,800 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $40,050. Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no…
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and aracing bike. Data on sales and expenses for the past quarter follow:Dirt Mountain RacingTotal Bikes Bikes BikesSales ............................................ $300,000 $90,000 $150,000 $60,000Variable manufacturingand selling expenses ................ 120,000 27,000 60,000 33,000Contribution margin ...................... 180,000 63,000 90,000 27,000Fixed expenses:Advertising, traceable ............... 30,000 10,000 14,000 6,000Depreciation of specialequipment ............................. 23,000 6,000 9,000 8,000Salaries of product-linemanagers .............................. 35,000 12,000 13,000 10,000Allocated common fixedexpenses* ............................. 60,000 18,000 30,000 12,000Total fixed expenses .................... 148,000 46,000 66,000 36,000Net operating income (loss) ......... $ 32,000 $17,000 $ 24,000 $ (9,000)*Allocated on the basis of sales dollars.Management is…
Xu Ltd currently produces and sells two types of pillows that are currently gaining market share. The two types of pillows are Latex and Feather. Below are the costs and sales details of the two types of pillows for 2019: Latex FeatherAnnual sales (in pairs) 12,000 8,000 Selling price £30 £30Variable costs per pair:Materials £12 £12 Labour-machining(£8/hr) £2 £2 -assembly(£7) £2.50 £2.50 -packing (£6/hr) £0.30 £0.30Variable overhead £0.20 £0.20 Annual total fixed costs are currently…
Please give solution in correct and step by step detailed format thanku Don't give solution in image format A firm makes and sells a bed cover. The firm sells the bed covers for $150 each and incurs $525,000 of fixed costs each year. To make each cover requires $45 of direct materials and 0.75 direct labor hours. The firm pays its highly skilled workers $60 per hour and variable overhead is applied at the rate of $20 per direct labor hour. This past year 25,000 covers were sold, and the firm is evaluating what effect a change in sales volume would have on its contribution margin. What change in contribution margin should the firm experience if it increased sales by 10,000 units and fixed costs rose by $50,000 over the last year?